Troy’s Downtown Business Improvement District will cease operations come the new year if it can’t find financial support
The nonprofit, which presents events like Pig Out, Rockin’ on the River, and Chowderfest and helps to beautify downtown, could cease next year. That’s if the city prevents the BID from being able to raise taxes that help pay for its services.
First-term Republican Mayor Carmella Mantello says the city doesn’t necessarily need the BID to put on those flagship events.
“I can assure you, the events will continue; either the city primarily, which I told you, we do so much for them now, the events,” Mantello said “Or we could even partner with even another nonprofit or 501c3.”
The BID, which hasn’t received an increase in tax funding in 17 years, is seeking a 5 percent tax levy increase, which would bring the annual tax paid by property owners in the special tax district to 10 percent. That would translate to an annual budget of $368,548.47.
Its current budget is $339,728.
Executive Director Olivia Clemente says the BID can only do so much with its current funding. She says this year, the nonprofit has been working in a minor deficit and has already cut back on what it’s been able to do. Speaking with WAMC Monday, Clemente says the BID has done all it can.
“It'll be cut to basic maintenance, which means beautification, so the hanging baskets and the planters will still. Get planted. So being able to do that, it just might be limited to the amount that they're able to put up, but it will just be a beautification driven organization, part time Executive Director, which means, like the marketing side of things,” Clemente said. “Yes, you can get internships or interns. That's great. Been trying that myself and the marketing and tourism stuff will go away. Main events will go away in the sense the bid won't be running them. The BID cannot run events anymore. So if anyone else wants to take those events on, by all means. But the BID can’t run them.”
Private sponsors bring in around $70,000 for the BID annually. But this year, that number was down to about $55,000 because of cuts to federal and state grants. The nonprofit relies solely on events and taxes for its funding.
Clemente says an increase in the BID’s assessment would only affect properties within the special district, and therefore wouldn’t raise taxes citywide.
Troy’s tax cap for 2026 is $30,564,172. The mayor’s current proposed levy of $30,522,387 leaves just over $40,000 before that cap is hit.
Mantello says the city cannot support the BID, saying the organization put itself in financial straits by not planning ahead.
“I did tell Olivia, you really needed to start this effort back in 2024 around your budget time, September, October. And then on top of it, I also told Olivia, you really should have taken the campaign all throughout the city, because even though we know that the business is in the BID boundaries, pay the taxes, but it impacts our whole city budget,” Mantello said.
Clemente tells WAMC the BID first met with the city late last year when she expressed her concern over the lack of funding. Clemente says the mayor’s office knew of the BIDs struggles then.
“I still feel, I was pushed off to a point of push her off, push her off, push her off, keep pushing her down the line until the budget comes,” Clemente said. “Because that was the other argument. Of, like, she kept saying to us, ‘you can't just, like, jump into budget conversations at the last minute.’ It was like, Carmella, we're not. Like, we're literally not. You guys chose to do this. Like, this was a choice. You knew the BID was in dire need. Like, very dire need.”
The BID’s Board of Directors voted Thursday to draft legislation that may be presented to the city council. Approval would allow the BID to move forward with that 10 percent tax assessment for 2026.
Aaron Vera, who is on the BID’s board and a Democratic member of the city council, said he would have to abstain from voting on the legislation, making it more difficult for the bill to get the super-majority needed.
Republican Councilor Ryan Brosnan, who has been known to vote against his party, says he will vote against the tax cap increase, even after initially considering support. In a text to WAMC, he said, “I can’t support raising the BID due to the negative effects breaking the tax cap would have for everyone in the city for years to come.”
